Box 601, 185-911 Yates Street, Victoria, B.C. V8V 4Y9 Helpline: (250) 920-0222 Toll Free 1-877-33-VISOA (877-338-4762) Web site: www.visoa.bc.ca VISOA Email: [email protected] or [email protected] Vancouver Island Strata Owners Association

VISOA Bulletin - NOVEMBER 2009 President’s Report Summer is now over and my wife Vancouver Island MLAs Ida Chong, coming from Campbell River, Comox, and I spent it enjoyably, taking leisurely Murray Coell, Ron Cantelon and Don Courtenay, Cowichan Bay, Duncan, trips to the wonderful beaches and McRae. You can find a link to Bill 8 on Gabriola, Ladysmith, Lake Cowichan, parks on Vancouver Island. We have our website. Although this Bill falls far Nanoose Bay, Parksville, Port Alberni, three grandchildren, so these are very short of what is needed and is not based Qualicum Beach, Shawnigan Lake, special experiences for us that are not to on a transparent consultation process Sidney, Victoria and West Vancouver. be missed. It’s also a gentle reminder of involving strata owners, it will affect all The topic was the “Nuts and Bolts of some of the benefits of strata living. The strata owners. The legislation will come Strata Council” and we will likely give ability to easily pack up and leave our into effect through regulations yet to be it again in Victoria. suite and the freedom from maintenance determined by the Government. This chores means we have the time to spend may occur in stages, with some parts of Please remember to make a note with our grandchildren. Bill 8 (such as changes to section 143 of of the upcoming seminar in Victoria. the SPA) coming into effect on January It is called “Planning for your Strata On October 6 the BC Government 1, 2010 and other parts coming into Depreciation, Who needs it, who reads passed Bill 8 - The Strata Property effect later. Please watch our website it?” Proposed government changes to the Amendment Act, 2009, without for further updates. Strata Property Act may mean that your amendment. The Official Opposition strata is required to prepare depreciation made a motion to put the Bill on hold Our seminars are always exciting reports -so this seminar could be a good for 6 months for public consultation, events but the one we recently had introduction to this valuable planning however the motion was voted down in Nanaimo was right off the scale! tool. It’s all happening on November 22 by Government Members including We had 161 people in attendance, at the Victoria Pro Patria Legion. - Tony Davis, President In this issue...

• President’s Report Tony Davis...... 1 BOARD OF DIRECTORS 2009 • Editor’s Message Sandy Wagner...... 2 President Tony Davis • You asked Harvey Williams...... 2 Vice President Sandy Wagner • Running meetings - Q & A Fred & Peg Francis...... 3 Secretary Claudio Procopio • Windows are not clear Harvey Williams & Sandy Wagner...... 4 Treasurer Daryl Jackson • Legal issues for buyers and developers of pre-sale condos Greg Harney ...... 5 • Strata Property Act amended Shawn M. Smith...... 6 Members at Large • Licensing of strata managers - boon or boondoggle? Harvey Williams ...... 9 Elsie Lockert, Deryk Norton, • The leaky condo problem and how to live with it Dr. Bryce Kendrick...... 10 David Grubb, Laurie McKay, • Talk to us - member comments...... 11 Harvey Williams

“Assisting Strata Councils and Owners since 1973” VISOA Bulletin November 2009 • 1 Editor’s message You asked: by Sandy Wagner, Bulletin Editor What happens to left over special levy funds? This has been a busy few months for us at VISOA. We held a Seminar by Harvey Williams in Nanaimo in September, and atten- Have a question about managing your exceeds that required must be returned dance exceeded all our expectations. strata corporation? Ask us, we’ve to the owners in proportion to the Our seminars are free for members and had a lot of experience helping strata amount they contributed. you took us up on it this time! Due to corporations solve problems, perhaps we the very large audience we were unable There is one exception to that can help you. Questions may be rephrased requirement and that is if no owner to answer all the written questions in to conceal the identity of the questioner is entitled to receive more than $100, our allotted time, but made a commit- and to improve clarity when necessary. ment to answer them on our website. We do not provide legal advice, and our the strata corporation may deposit that Your editors worked hard and got all answers should not be construed as such. amount in the Contingency Reserve 50 questions listed and answered, and However, we may and often will advise Fund. If even one owner is entitled to posted to the website within 10 days as you to seek legal advice. a refund of more than $100 the money promised. must be returned. This leads me to ask for your help: What topics would you like to see for Question: This raises another issue suggested by our seminars? We ask this question on a Helpline question. For some peculiar all of our seminar evaluation forms and Last year we passed a special levy to reason, a strata agent listed the excess we really do try to accommodate your re-shingle the roofs in our town house amount of a special levy in the annual strata development. Our roofs are now suggestions – keeping in mind that we budget as income and the repayment are an all-volunteer, non- organi- done and there is enough money left over to paint our garage doors. Our of the money to owners as an expense. zation so we cannot pay for our speak- This is a completely unnecessary step, ers. Do you have a specific speaker you contingency reserve fund is depleted cluttering the budget and if the budget would like to hear? We hold 5 seminars and the garage doors are badly in need each year, all at no cost to our members. of paint. Is it OK for us to use excess were defeated, this would result in a Please email me at [email protected] funds for that purpose instead of violation of the Act. and share your seminar topic ideas. returning it to the owners? The obvious and proper way to Something else that had us all busy return the money to the owners is to was the Strata Property Amendment simply write cheques in the appropriate Act – otherwise known as Bill 8. The Answer: amounts to each owner. That is what The short answer to your question is, No! Bill passed third reading shortly before the Act requires. the deadline for editing this Bulletin I suggest that you establish a depre- so a flurry of last-minute articles were Section 108 of the Strata Property written by our Board Members and Act requires that all funds raised by ciation schedule and contribute enough Guest writers. special levy must be used for the money to your Contingency Reserve You might notice that this edition of purpose set out in the resolution to Fund each year to avoid special levies. the Bulletin does not have a “Green” ar- approve the levy. Any amount that ticle as promised. There was not room to include one with the large number of articles submitted for this issue. We do, however, have a feature on another sort of green, if you’ll pardon the pun: mould. Dr. Bryce Kendrick has written an article on how to live with mould, if you have no options. With the recent cancellation of the HPO Loans for leaky condos, this may become reality for some of our readers. Dr. Kendrick’s article is very timely and I’m sure you will find it interesting and informative. And as always, we invite your com- ments and feedback. I hope to hear Photo by Maida Neilson from you. Audience at VISOA’s September 20 Seminar “The Nuts and Bolts of Strata Council”.

2 • VISOA Bulletin November 2009 VISOA Helpline: (250) 920-0222 • Toll Free 1-877-33-VISOA (877-338-4762) or [email protected] Running meetings ~ Q & A Answers by Fred and Peg Francis, authors of Democratic Rules of Order.

Council meetings and Annual Gen- It may take courage for a chair to say dated list of events and decisions. eral Meetings can sometimes be frustrat- and enforce these points but it makes a ing events. However with agreement on huge difference to the quality and fair- Q. Must the minutes include the names rules of order, even the wildest meetings ness of the meeting. It helps to realize of the mover and seconder? can be brought under control, and coop- (and say if necessary) that you are just A. No, but in more formal meetings, the erative councils can work efficiently and doing your duty impersonally. secretary may wish to include them, or harmoniously. These are meetings you the members could pass a motion or have could even look forward to attending! Q. Can the chair vote? a standing rule requiring this to be done. To help, we are offering some ques- A. Yes, unless the members have ruled tions and answers on rules of order. The differently with a bylaw or standing rule. Q. Must the minutes of the previous answers are written by Fred Francis, one However, a formal chair should do so meeting be read at the beginning of the of the authors of Democratic Rules of as inconspicuously as possible to avoid meeting? Order. He passed away in 2003 but the showing bias. A. No. It may be customary and a good wisdom in his writings is still construc- idea, but the final authority is the mem- tive. His family continues to publish the Q. If both the chair and the vice-chair are bers who decide the agenda including book through Cool Heads Publishing. It absent what happens? when the minutes will be read. If the min- is available through the VISOA publica- A. Any member, perhaps the secretary, utes have been circulated, the members tions. can call the meeting to order, call for may not wish to have them read aloud. nominations, and conduct an election of Q. What can a chair do to ensure a fair a temporary chair for that meeting. Q. Can a member who will be absent and harmonious discussion of a conten- submit a written amendment to a motion tious item? Q. How much should a chair guide dis- that is on the agenda? cussion? A. No, unless a standing rule or bylaw A. Occasionally it is helpful to remind A. An occasional verbal summary can be states differently. members before or during a meeting that helpful but a formal chair must be care- ful to maintain impartiality. A chair who Q. Can a motion be put on the agenda our rules of order allow and require us keeps the discussion on track, prevents without naming a mover? to discuss and make joint decisions in an overzealous members from dominating, A. Yes. When its turn comes up in the orderly fashion, even when opinions are helps members speak clearly one at a meeting any member can move it. If the strongly divided. time, and keeps the meeting from drag- motion is not formally made, the meet- ging on with repetitions, is doing much ing moves on to the next item on the that a member’s right to an uninter- to make the meeting worth while. Minor agenda. rupted floor includes freedom from any decisions can be made by consensus. For kind of audience response while that example, the chair might say, “Unless Q. Sometimes we want to consider an member is speaking; there is an objection, we will continue idea even though no formal motion has this meeting without the noisy micro- been presented. What can we do? that a member who has spoken once phone.” A. You can move that we discuss the may not reply to other speakers’ state- idea informally for a few minutes. This ments, no matter how outrageous, until Q. How detailed should minutes be? is sometimes a very effective way to all others who wish to speak have done A. They should be as detailed as the sec- discover what members think and know so; retary and/or the members wish. Min- about a topic without the formality and utes should contain all motions exactly limitations of a motion. It can save a lot that a member must be acknowledged as moved and a very brief description of of time. Sometimes a motion will arise by the chair before speaking; all major actions. Minutes often look like out of the discussion. Or when finished, expanded agendas. Minutes of formal a member will move “that we go on to that we need not change our opinions, meetings will generally be fuller than the next topic of the agenda now” and the but we must accept the voting majority those of informal meetings. Minutes of meeting will continue. as the authorized decision-maker. informal meetings might be simply a Continued on page 4

“Assisting Strata Councils and Owners since 1973” VISOA Bulletin November 2009 • 3 Running meetings Q & A Continued from page 3 Windows are not clear Q. What can I do, as Chair, Good order requires that By Harvey Williams and Sandy Wagner to prevent a talkative mem- no one member be too Even a less than alert reader will quickly recognize that the title ber from dominating the dominant. Recognizing the to this column is a pun because everyone knows that except for meeting unfairly? fairness of this and that as frosted windows in doors, dividers and bathrooms, windows are A. There are different ways. Chair you have both the clear. What is not clear is who is responsible for the care and main- If it is a recurring problem authority and the responsi- tenance of windows in strata townhouses and apartment blocks. you might like to announce bility to enforce this, may If you ask any three lawyers, you will likely get three different at the beginning of the help give you the needed responses and here is why: meeting that no one may courage. You should insist • Section 72 of the Strata Property Act requires the Strata Corpora- speak more than once on a that no one speak until rec- tion to repair and maintain common property and common assets. topic until all others wish- ognized by the Chair. You ing to do so have had a turn. may have to politely but • Section 1 defines common property as anything that is part of the If it is a large or controver- firmly refuse to recognize land and buildings shown on a strata plan that is not shown as part sial meeting you could also one who has already spo- of a strata lot. ask for a motion limiting the ken until all others wishing It’s clear then: the strata corporation has an obligation to main- time for any single speaker to speak have done so - no tain and repair windows. to a specific amount (e.g. 3 matter how outraged he or Or do they? minutes) and then appoint she is as at what has just a timekeeper to announce been said. • Section 38 defines the strata lot boundaries as midway between “time’s up please” when the floor, wall, or ceiling that faces the strata lot and the surface necessary. of the structural portion of the wall, floor, or ceiling that faces the other strata lot, the common property or another parcel of land un- less otherwise shown on the strata plan. This implies that windows set exactly on the centre line or inside it are part of the strata lot hence the owner’s responsibil- ity, and windows set outside that line are the strata corporation’s responsibility. What then to do about a bay window? A recessed window? This isn’t so clear after all. Standard Bylaw # 8 says the Strata Corporation must repair and maintain the common property. This confirms what is stated in Section 72 of the SPA. It states they must repair the structure of the building, the exterior of the building, chimneys, stairs etc., and doors, windows, and skylights on the exterior of the building or that front on the common property. That confirms that windows are common property. Continued on page 8 SLEGG CONSTRUCTION MATERIALS LTD. SupplierS to the roofing induStry

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4 • VISOA Bulletin November 2009 VISOA Helpline: (250) 920-0222 • Toll Free 1-877-33-VISOA (877-338-4762) or [email protected] Legal issues for buyers and developers of pre-sale condos

by Greg Harney

When will a to tection for buyers of strata buyer. er to get out of their condo purchase a condo be en- lots. The Act is still new and If a developer does not . There are protec- forced? Given the popular- the dust has not settled, but comply with the Act, the tions in the Act for devel- ity of pre-sale condos these a basic premise is that the buyer may be able to re- opers as well. However, if days and the current rapid buyer is entitled to know scind the contract, and you are a buyer who be- fluctuations in the real es- what he or she is buying. obtain a refund of the de- lieves that you are not get- tate market, buyers and de- This means that developers posit. ting what you contracted velopers of strata lots alike are required to provide dis- In a BC Supreme Court to get, or that you have not want to know where they closure statements describ- case decided earlier this been provided with all ma- stand. ing all material facts about year, the purchasers of a terial facts, you may want There are many reasons the development. A mate- $3.5M condo at UBC took to consult a lawyer. Simi- why buyers may want to be rial fact is a fact about the the developer to court be- larly, a developer that is relieved from their contract development or the identity cause it had not provided changing the design of the of purchase and sale. The of the developer that could them with all of the required property, has encountered economy may have affected reasonably be expected to disclosure statements. The financing problems, or their finances for the worse. affect the value, price or judge said that it was com- comes across any other sig- They may have bought be- use of the strata unit or the mon ground that the Act “is nificant changes may want yond what they can afford. development as a whole. a piece of consumer protec- to consult legal counsel to They may have inspected Examples of material facts tion legislation and that one determine if it’s necessary the suite when construction could include significant of its central objectives is to make further disclosure was finished and realized delays in construction, sig- to ensure that material facts to the purchasers. that it was not what they nificant architectural or de- are provided to purchas- In order to attempt to thought they were buying. sign changes, or environ- ers when developments are avoid these problems be- Construction may have mental issues such as the being marketed to them.” fore they arise, prospec- been delayed well past presence of contaminated The purchasers obtained an tive buyers should ask the what was promised. soil. order for rescission of the developer for all disclosure The Devel- Similarly, if the develop- contract, and for the return statements and should make opment Marketing Act was er makes a material change of their $350,000 deposit. sure they carefully read introduced in 2004 partially during the construction This does not mean that it these statements, as well the to enhance consumer pro- phase, it has to inform the is open season for any buy- contract, before they sign anything. Devel- opers should also Seminar sound system Small Business & Strata Bookkeeping review the disclo- provided by PROSHOP Services & Administration sure statements to • Over 20 years experience • Computerized Accounting ensure they have Sound & Lighting • Spreadsheets & Word Processing • Produce Financial Statements addressed all ma- terial facts. • Year End Budgeting • Assessment Formulation Greg Harney • Contingency Forecast Report Assistance is a partner with • Consulting & Applicable Functions when required Shields Harney Barbara Zimmer Legal Counsel. Attention to Detail • Dedicated • Analytical For more infor- Jack Paulo 250-361-1711 250-727-9743 mation call 250- 405-7612. 3 - 464 Bay St. Victoria BC E-mail [email protected]

“Assisting Strata Councils and Owners since 1973” VISOA Bulletin November 2009 • 5 Strata Property Act amended by Shawn M. Smith, Barrister & Solicitor It has often been said that the only cide whether an action of the strata cor- Depreciation Reports constant in life is change. Sometimes poration has been significantly unfair to change is for the better. Sometimes not. an owner, approve unanimous votes that The current s.94 will be repealed and Sometimes it is a bit of both. fall short, order owners to comply with a new section enacted that requires man- the Act and bylaws and approve special datory depreciation reports to be pre- Some 11 years after the passage of the levies for repairs (more will be said on pared. There will be regulations devel- Strata Property Act1 change is coming to this below). This is perhaps one of the oped which will set the criteria for such the strata community. Bill 8, otherwise most significant changes to the whole reports, the frequency with which they known as the Strata Property Amend- strata regime. In the author’s view it must be prepared and who is qualified ment Act, is currently winding its way will mean increased litigation due to the to prepare them. All strata corporations through the Provincial Parliament. It Provincial Court being more accessible will be required to prepare one within is the product of extensive consulta- than Supreme Court. Strata corporations two years of the amendment coming into tions with various stakeholders and is should make provision in their budgets force. Strata corporations will be able to viewed as improving the way that strata for legal fees to defend actions brought opt out by way of a ¾ vote. Certain stra- corporations and owners interact. Only by owners. This change should also ta corporations (likely bare land) will be time will tell whether this goal will be have made bylaw enforcement easier, exempted by regulation. There does not, achieved. What is certain is that the way but it appears that it doesn’t. There is however, appear to be any requirement in which strata corporations currently no companion amendment to permit a that the strata corporation do anything function will change in some key areas. bylaw passed under s.171(4) waiving with the results of the reports. Perhaps the requirement for a ¾ vote for Small it is assumed that common sense will There are a number of proposed Claims actions to include applications prevail and long term planning will be changes under the Strata Property that do not involve suing over money. undertaken as a result of receiving such Amendment Act. Some are routine mat- Thus a ¾ vote is arguably still required a report. ters of little importance. Others are more to approve applications to the Provincial 2 substantive. This article will briefly re- Court. Audits view those changes the author considers as significant. Conflict of Interest Audited financial statements will now be required unless the owners waive Changes to s.32 will now require a Small Claims this requirement by way of a ¾ vote. council member to excuse themselves Although this will mean increased costs Currently the jurisdiction of the Pro- from any part of a meeting that involves to strata corporations, it may result in vincial Court over strata matters is lim- a “matter” in which they have a direct greater peace of mind for sceptical own- ited to monetary issues (i.e. where the or indirect interest which in turn creates ers and perhaps greater accountability. strata corporation sues an owner to re- a conflict with the council member’s cover money and vice-versa). That will duty to act in the best interest of all the Tie-Breaking Votes change with the new amendments. The owners. While this is hopefully com- Provincial Court will now have jurisdic- mon practice already, it will soon be a As a result of amendments to s.53 tion to order the strata corporation to requirement. comply with the Act and the bylaws, de- Continued on page 7 YOUR AD IN THE BULLETIN FOR JUST PENNIES A DAY! Members in good standing may place an ad in the Bulletin. Rates are based on 5 Bulletins a year, and are as follows: • Business Card Size: $75/yr ($22.50/single issue) • ¼ Page Size: $150/yr ($45/single issue) • ½ Page Size: $300/yr ($90/single issue)

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6 • VISOA Bulletin November 2009 VISOA Helpline: (250) 920-0222 • Toll Free 1-877-33-VISOA (877-338-4762) or [email protected] Strata Property Act amended Continued from page 6 the president, and in his or her absence, ily members and hardship rentals. This cessful will be something only time will the vice president, will be granted a tie- change may require some rental restric- tell. While arbitration is helpful in re- breaking vote at general meetings. It tion bylaws to be revised. ducing the burden on the justice system, should be noted that this right is specific it does deprive us all of the benefit of the to the office and is not given to the chair Special Levies for Repairs court’s interpretation of the Act.3 of the meeting. Thus, if someone other than the president or vice president (i.e. Amendments to s.173 will hope- There are undoubtedly many other a strata manager) is chairing the meeting fully make it easier to get repairs done changes that owners, strata managers, that person does not get a tie-breaking when there is a small minority block- and lawyers would like to see. But those vote. ing them. Where there is a special levy are only wishes at this point. On the au- that involves repairs that are necessary thor’s “wish list” is an amendment mak- Amending Bylaws to ensure safety or prevent significant ing deductibles part of a loss or damage, physical or otherwise, under s.116. Currently such amounts are Currently any amendments to the and the resolution receives less than the not secured other than under a Form F. bylaws which occur before the first an- required ¾ vote but has more than 50% For now, strata corporations, strata man- nual general meeting must be approved approval, a court application can be agers and owners should familiarize by way of a unanimous vote. That will brought by the strata corporation within themselves with the new changes. now be extended to amendments made 90 days of the vote to have the same ap- before the “second annual general meet- proved. It is not clear whether a ¾ vote This article is intended for informa- ing”. Newly formed strata corporations is required for such an application. If it tion purposes only and should not be will not be able to revise their bylaws for is then the section is useless as the same taken as the provision of legal advice. at least two years. Clarification is need- people who blocked the levy resolution Shawn M. Smith is lawyer whose prac- ed though as to whether this precludes will do so for the resolution approving tice focuses on strata property . He passing new bylaws which address new the application. frequently writes and lectures for a vari- issues. ety of strata associations. He is a part- ner with the law firm of Cleveland Doan Arbitrations/Internal LLP and can be reached at (604)536- Exceptions to Rental Dispute Resolution 5002 or [email protected]. Restriction Bylaws It appears that extensive new regula- 1 Although passed in 1998 it did not come into An amendment to s.142 will provide tions governing the conduct of arbitra- effect until July 2000. that rentals to family members and rent- tions as well as a regulation requiring als on the basis of hardship do not form that a voluntary dispute resolution pro- 2 There is an argument to be made, based on case part of the pool of permitted rentals. In cess be developed, will be enacted. Al- law dealing with sections 117 and 174 of the other words, if a strata corporation has though the regulations are not yet avail- SPA, that a ¾ vote is not required for an applica- tion under s.173. a bylaw that permits five strata lots to able it appears that there will be a strong be rented, the number of permitted rent- emphasis on moving disputes out of the 3 A decision of an arbitrator does not create a als will be five plus any rentals to fam- court setting. Whether that will be suc- binding precedent. VISOA’s upcoming seminar Sunday, November 22, 2009 • 1:00 - 4:00 pm • Register 12:30 pm RESERVE FUND STUDIES: Who needs it, who reads it? Speaker: Rudy Wouts, CSCE, P.Eng. Trafalgar / Pro-Patria Legion, 411 Gorge Road, Victoria No charge for VISOA members, $20 for non-members

“Assisting Strata Councils and Owners since 1973” VISOA Bulletin November 2009 • 7 Windows are not clear Continued from page 4

But to further cloud the issue, the Stan- discount from the contractor. ing a bylaw that goes beyond the standard dard Bylaws are revisable by the owners, bylaw by specifying responsibility for win- and many stratas have done just that: they Another reason to keep the maintenance dows. It works for us. While such a bylaw have specified, by bylaw, that windows are and repair of windows a responsibility of does not prevent an owner from taking a the responsibility of the unit owner – likely the strata is to avoid injuries to individual case to court - and I would certainly not to push the expense onto the individual suite owners. Can you imagine if a 70-year- predict the outcome if one were taken to owner and “save” the strata some money. old lady living on a 6th floor tried to lean court - owners accept it because it’s there out her balcony to squeegee her bedroom and in writing. For those who are interest- The Strata Property Act and its Regu- window, all because she couldn’t afford a ed, here is our bylaw: lations do not allow a strata corporation window washing service? to make owners responsible for common The strata corporation is responsible Whether or not you think that windows property. But the strata can revise or re- for maintenance and repair of windows, are or are not common property, don’t peal a Standard Bylaw. More and more window frames and window sills that is you think that the Strata Property Act and unclear. necessary to keep them weather-proof and your bylaws should agree with each other? for painting external surfaces of window We disagree with this bylaw revision Should the Standard Bylaws be allowed to frames and sills as needed. for this reason: the strata would be giving be amended to contradict the SPA? If the up control over the quality of the materi- authors of the Strata Property Act intended Owners are responsible for the internal als or workmanship in any window repairs for windows to be common property, then surfaces and components of window frames or replacements. If an inferior product was windows should not have been mentioned and sills and for repair of damage result- incorrectly installed, it could cause excess in the Standard Bylaws. ing from owner modifications to original heating costs, or worse, water ingress into windows such as storm windows and in- That would have been clear to all. sect screens, whether inside or outside the the building envelope. A strata could well original window glass, and for all window end up paying much more over the long An example of an agreeable solution is breakage resulting from owner activity. term than would be saved by passing the to create a bylaw which specifies what was cost of windows on to individual owners. likely the intent of the original wording in A lawyer might find fault with this bylaw, the SPA – that the Strata Corporation pay but it has completely eliminated dissension If windows are replaced as a common for common property, and the owners pay over windows by providing consistency expense, the strata has control over the for their own actions. One strata has this and predictability in responsibility for the materials, installation and timing – and re- to say: maintenance of windows. member that contracting for a large quantity of windows is likely to result in a quantity We have solved that problem by adopt- Much clearer, wouldn’t you say?

8 • VISOA Bulletin November 2009 VISOA Helpline: (250) 920-0222 • Toll Free 1-877-33-VISOA (877-338-4762) or [email protected] Licensing of strata managers - boon or boondoggle? by Harvey Williams, VISOA Helpline

As of December 31st of this year, the licens- dling strata corporation funds. There must be a Homeowner Protection Office. ing requirement for strata managers (agents) separate trust account for each strata corpora- under the Real Estate Services Act (RESA) will tion, and contingency reserve and special levy There is less competition in the strata man- have been in effect for four years. It’s time to funds must be kept in a trust account separate agement field. The REC requires that strata ask ourselves: has the licensing of strata man- from operating funds. Financial records must management companies be headed by a manag- agers (or more properly, strata agents) been a be kept including a ledger, showing cash re- ing broker essentially closing the door on new boon or a boondoggle for strata owners? ceipts and disbursements, cancelled cheques, stand-alone strata management companies. vouchers and the like. Bank statements must Innovation in strata management is inhib- Boon be provided to strata corporations within 30 ited. Formation of strata management coop- No more fly-by-night strata management days of the date they are issued by the bank. eratives for small strata corporations were once companies. Before licensing, anyone could Standards for service agreements are set. discussed in which several small strata corpo- hang out a strata management sign. Even a Agreements must specify the services to be rations would band together to deliver manage- criminal record did not disqualify one from be- provided, moneys to be handled, the duration ment services to their members. The existing ing a strata manager and handling strata funds. of the agreement and a clear statement of sign- rules for licensing strata managers make this Now strata agents must complete a course of ing authority. impossible. study and have a criminal record check in order to be licensed. Agents are subject to discipline. A process The REC process for receiving complaints is in place for investigating and acting on is too limited. Except in special cases, the REC Strata management services requiring li- complaints about strata agents who violate the will only investigate a complaint in the form censing are defined. Writing cheques, collect- RESA rules. of a resolution by the strata council. In rare ing funds and signing contracts on behalf of exceptional circumstances a complaint from an strata corporations are among the services for Boondoggle individual will be accepted. The strata council which licensing is required with an exemption may be a party to the offense or reluctant to act. for self-managed strata corporations. Strata owners are not represented on the Real Complaints about strata agents from individual Estate Council. It is doubtful that the interests owners should be considered. Licensing makes strata agents more finan- of strata home owners receive the same prior- cially accountable. Strict rules are set for han- ity as they would under an agency such as the Continued on page 10

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“Assisting Strata Councils and Owners since 1973” VISOA Bulletin November 2009 • 9 The leaky condo problem and how to live with it By Dr. Bryce Kendrick

Everyone on the west coast knows about in the newspapers (I have heard it alleged in Most other moulds, such as Penicillium, leaky condos, and some of you live in one of legal proceedings that mould has caused at- Aspergillus, Ulocladium, Chaetomium and them. I have seen many alarmist articles in tention deficit disorder, impotence, has killed other common kinds, have the potential to the press in recent times, informing us that it mice, and has caused total loss of carpets, cause allergies, but not in most people. In often costs up to $100,000 to fix the problem curtains and other furnishings). I was per- other words, moulds are not as scary as for a single condo, and that this is beyond fectly aware that none of these allegations some people would have you believe. Two the means of many senior people, who are were verifiably true, and that this whole per- things will help you to deal with them: often on fixed incomes. The situation has formance was directed to one end - a large recently been made much worse by the BC settlement from an Insurance company. 1. Knowing something about how they Government’s decision to end the interest- operate. Their spores are in the air, every- free loan program that helped many people It is clear that there is a great deal of pub- where. When they land on something, they to fix their condos. lic hysteria and ignorance about moulds. I cannot grow unless there is some moisture should know, because I have worked with and some food. If they land on damp wall- So now what do you do? Well, in the moulds for more than 50 years, handling board, they may germinate and grow, even- words of ‘The Hitchhiker’s Guide to the them in buildings and in my laboratory, tually producing more spores. It is usually Galaxy’ - DON’T PANIC. There are two growing them in culture, describing new at this stage that we see them - they emerge main problems associated with leaky con- genera and species, and writing and editing from the food substrate and develop micro- dos - dampness and mould. Let’s deal with books about them. scopic spore-bearing structures. When a lot them in turn. of these occur together, they produce a vis- So here’s the lowdown. A few of you will 1: Dampness. I come from Britain where ible spot or colony, which can produce mil- be seriously allergic to mould spores, and lions of spores. In some species these are dry there were millions of damp houses. People will develop asthma or upper respiratory al- lived in them and raised families in them. and easily become airborne, in others they lergies when exposed to them. Most of you are slimy and tend to stay put. Most of these people were renters, and they will not be allergic to moulds, and can re- certainly did not have the money to fix the gard their presence as little more than an an- 2. In either case, it is not difficult to get problem. Their did not regard it as noyance. There are a number of moulds that a serious problem and often did little or noth- rid of them. Wiping the contaminated areas commonly occur in damp houses - probably ing in the way of remediation. So we know with a dilute bleach solution will stop them about 20 or so different kinds. One of them, we can live with dampness. This is by no in their tracks. If you can dry things out and called Stachybotrys, has been called the means an ideal situation, but it can certainly keep them dry, the moulds will not come be survived. And in Canada we always have toxic mould, and strikes fear into the hearts back. If you can’t guarantee the dryness, some form of central heating, which largely of many. This black mould, which likes they may redevelop, but you can repeat the mitigates the effects of dampness. to grow on cellulose (paper), does indeed dilute bleach treatment to deal with them. produce toxins, but it is extremely unlikely 2: Moulds. Can we live with the moulds that any of you would ever be exposed to Dr. Kendrick runs a consulting business on that dampness brings? For many people, this them. First, the fungus produces its spores moulds in buildings. For further informa- is the real issue. Dampness brings mould, in droplets of slime - they will not become tion: Phone: 250-655-5051 and mould brings asthma, other respiratory airborne. This is because they are picked up E-mail: [email protected] allergies, and nasty conditions only hinted at and spread by tiny animals such as mites. Web site: www.mycolog.com

Many strata agents are still unfamiliar with tion and contingency fund contributions are Boon or boondoggle? the Strata Property Act. Complaints to VI- not credited to the contingency fund trust ac- Continued from page 9 SOA’s Helpline about misinformation from count within seven days of receipt as required strata agents do not seem to have diminished by RESA rule 3(c). There is insufficient compensation for mis- since licensing was required. Many agents still appropriated funds. Licensing was driven in provide financial reports that do not comply • Many strata agents provide misinformation part by some high profile misappropriations of with the Strata Property Act. about Strata Act requirements. strata funds by strata managers. The maximum compensation for a single loss is $100,000 The following comments are based on calls • Many strata agents make little effort to as- and total compensation for losses involving and emails to the VISOA Helpline. sist strata councils in improving their effective- one management company is $350,000. Many • Many strata agents do not provide financial ness. strata corporations have well over $100,000 in reports that comply with the Strata Property Lest this sound too negative, there are some their reserve and/or special levy funds. The to- Act or the RESA rules or both. tal of all the reserve funds controlled by a one strata agents who perform well and provide in- management company could run into the mil- • Operating funds and contingency funds are formation and guidance to the strata councils lions of dollars. usually included in a single budget presenta- they work for. They are to be applauded.

10 • VISOA Bulletin November 2009 VISOA Helpline: (250) 920-0222 • Toll Free 1-877-33-VISOA (877-338-4762) or [email protected] TALK TO US This month’s letter is from Beth Rogers of Strata VIS338. We at VIS338, Village Oaks, want to thank all of you at VISOA for all the good work and quick delivery of “A Commen- tary of Bill 8”. All the hard work of your organization is very much appreciated, Regards, Strata Council Tim Hoskins, President Helen Maceachern Photo by Claudio Procopio. Beth Rogers, Treasurer From left, Gwen Bell and Joan Marr of Sidney organized the protest. Audrey Thayer, Secretary

In our last issue of the Bulletin we reported that the Minister of Housing and We welcome letters and email from Bulletin Social Development, Rich Coleman announced the end of the Reconstruction readers. This is your Bulletin and your Letters Loan Program On July 31. This program provided loans to owners of leaky page. Speaking to Vancouver Island strata condos who were unable to obtain funding elsewhere. Many of these owners owners like you is our mandate - hearing from were seniors on a fixed income. you is our pleasure. The program stopped accepting applications at the end of July, but on Au- gust 25 some angry condo owners were on the lawn outside the legislature for Email us at editor @visoa.bc.ca the opening of the new session, demanding the interest-free loans be contin- Write us at Box 601, 185-911 Yates Street, ued. Victoria BC V8V 4Y9 Please include your name, strata number and Joan Marr (R) and Gwen Bell (L) of Sidney organised a protest and Joan said telephone number. her condo has been leaking for four years, and she and her neighbours were Letters and emails may be published on-line. just completing their application for a loan when the program was halted.

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“Assisting Strata Councils and Owners since 1973” VISOA Bulletin November 2009 • 11 BUSINESS MEMBERS Introducing new All Points Home Inspections Specializing in Home and Property Inspections 250-213-6700 business members [email protected] • www.building-inspection.ca VISOA welcomes two new Business Members this month: Coastal Community Insurance Services Business Insurance Expert including Houle Electric, and Cool Heads Publishing. Commercial Property and Liability 250-386-7737 [email protected] Houle Electric is BC’s most trusted name in electrical contracting. Founded in 1944, Houle prides Cool Heads Publishing Publisher of “Democratic Rules of Order” itself on a tradition of service excellence for residential, 1-888-637-8228 business, industrial and government sector customers. [email protected] From 24-hour emergency service to large scale system www.coolheadspublishing.com design and project management, Houle’s many award- Empress Painting winning services also include data & network cabling, 250-383-5224 • 1-888-788-5624 [email protected] preventative maintenance & infrared technology, DDC www.empresspainting.com building controls, and security systems. Frascape Landscaping & Irrigation Cool Heads Publishing publishes “Demo- Landscaping maintenance and irrigation 250-882-1410 cratic Rules of Order”. Authors Fred and Peg Francis [email protected] • www.frascape.com wrote the book after attending many meetings and be- coming increasingly frustrated with cumbersome pro- Govan Painting Residential Painting Contractor cedures and chairpersons who couldn’t control their Qualicum Beach meetings. With its 8th edition, this handy volume tack- 250-228-2468 • [email protected] les the complexities of running a meeting and reduces Houle Electric Ltd. them to a simple set of common-sense rules that any- Full Service Electrical Contracting, incl. 24-hour service one can follow. Data & Networks, Security, Preventative Maintenance Victoria 250-388-5665 • Nanaimo 250-758-3011 www.houle.ca

Island Basement Systems Foundation Waterproofing & Drainage Services 250-882-1061 Formatted for Georgia Ireland [email protected] • www.ibsg.ca www. Seafirst Insurance Brokers Publication by Sidney (250) 656-9886 • Saltspring 250-537-5527 georgiaireland. [email protected] www.seafirstinsurance.com com Slegg Construction Materials Roofing and Building Envelope Material Supplies Contact Al Jones 250-478-5509 [email protected] For more information regarding Business Memberships please contact Daryl Jackson at 1-877-338-4762 or Sterling Fire & Safety Services Fire Safety Services & Fire Alarm Upgrades [email protected]. (Please note that VISOA 250-478-9931 does not guarantee or warranty the goods, services, [email protected] • www.sterlingfire.vicbc.com or products of their business members). Top Coat Painting Commercial & Residential Painting ~ DISCLAIMER ~ 250-385-0478 [email protected] • www.topcoatpainting.ca The material in this publication is intended for informational purposes only and cannot replace Unity Services Corporation Strata Maintenance Planning & Consulting consultation with qualified professionals. 250-893-3445 Legal advice or other expert assistance [email protected] • www.unityservices.ca should be sought as appropriate.

12 • VISOA Bulletin November 2009 VISOA Helpline: (250) 920-0222 • Toll Free 1-877-33-VISOA (877-338-4762) or [email protected]